Lance Armstrong Drug Use Confession and Breach of Contract

Posted on Jan 01, 2016

Disgraced former cycling champion Lance Armstrong could soon be facing multiple breach of contract lawsuits following his admission to using illegal performance-enhancing drugs during his career. The lawsuits could cost him millions of dollars. Armstrong denied the allegations for many years, but he allegedly confessed to talk show host Oprah Winfrey in an interview.

The U.S. government could be one of many parties that pursue a breach of contract action against the cyclist because the U.S. Postal Service sponsored Armstrong during his career. The contract between the parties contained a clause stating that Armstrong could not use illegal performance-enhancing drugs.

In addition to the breach of contract lawsuits that could be brought against Armstrong, he may also be sued under breach of fiduciary claims. However, since the confession comes more than seven years after he testified under oath that he had never taken banned drugs, he likely will not face criminal prosecution for perjury.

During his hugely successful cycling career, Armstrong earned massive amounts of money. His net worth is estimated to be approximately $100 million. Unfortunately, much of those earnings stemmed from endorsement deals that likely included contracts containing anti-doping provisions. This means that Armstrong’s admission to using the illegal drugs puts him in breach of those agreements. He could, therefore, be liable for returning the amounts paid to him.